closing costs... how much?

ok, we're starting our house hunt.... it's wonderfully exciting, but there's a lot to absorb. We've never been home owners before....

how much are closing costs generally? We're more in the condo price range, but hoping we can afford a small house out east..... I recall reading somewhere an estimate on the % purchase price that closing costs roughly run... but can't remember what it was! 4%? 3%? 5%? Still don't understand why more expensive homes cost more at closing than smaller properties...

also, I remember an LIF member saying they put in their offer to buy that the sellers cover closing costs.... how would that work?

terribly confused

thanks for your help!

Re: closing costs... how much?

I would estimate your closing costs to be at 5% of the purchase price. There are things that are called "pre-paids" that you will have to pay no matter what like the taxes that the seller has already paid to the county. The real big one is NYS mortgage recording tax which is running me almost $2500 according to my GFE.

If you want the sellers to "pay" for your closing costs, that's called a sellers concession. You just roll the closing costs into your mortgage and you get that money back after closing.

Re: closing costs... how much?

I would estimate 5% of the cost of the house you and the seller agree upon. We paid ~$12K in closing costs.

Re: closing costs... how much?

thanks everyone...... We just discovered a new listing we might be really interested in.... it looks good from the outside, at least

so, the novice home buyers (us) need some advice from those much wiser (you)!

thanks....... and I appologise in advance for asking more technical questions like this over the next several days.....

Re: closing costs... how much?

We paid about 3% of the purchase price in closing costs.

Re: closing costs... how much?

Ours was 5% of the purchase price. That included a full tank of oil, taxes and our lawyer fee.

In total it was over $20k

Message edited 8/8/2007 1:14:17 PM.

Re: closing costs... how much?

Just remember that if you don't have the $$ for closing costs, it can be added to your mortgage - it's called a seller's consession.

Re: closing costs... how much?

Re: closing costs... how much?

Posted by marriedinportjeff

Posted by PotofLuck06

Just remember that if you don't have the $$ for closing costs, it can be added to your mortgage - it's called a seller's consession.

thanks... we're trying to avoid that, because it will raise our interest rate from 5.75 to 6.25%.... I think the parental units may come to the rescue They're awesome....

Re: closing costs... how much?

Message edited 1/30/2009 10:30:05 PM.